When you and your spouse get a divorce, the marital property you share is going to have to be split up. Some are surprised to learn that this often includes retirement savings and benefits. Our New Jersey dividing retirement assets lawyers can help you figure out how this process works and ensure that you do not get taken advantage of.
Can My Ex Get Retirement Savings From 401(k)s and IRAs?
Even though you earned your retirement savings on your own, you earned them while you were married. That makes the contents of your IRA or 401(k) marital property. Your pension could also be part of the negotiations. This is why it’s important to have a lawyer who will help you look out for your interests and protect such assets as best you can.
Can’t I Be Hit With Tax Penalties For Withdrawing Retirement Savings Early?
This is not usually a worry in the case of divorce. There are usually ways to roll over funds into other accounts without taking that major tax hit. There are also ways for the court to help you. If you file a qualified domestic relations order, or QDRO, you can divide up retirement plans like pensions and 401(k)s. Some other retirement plans require a domestic relations order, or DRO, instead. Your lawyer can tell you what needs to be done.
What Happens to My Social Security Benefits?
When it comes to many of your retirement assets, there’s some room to negotiate. Maybe you and your spouse agree to keep your individual retirement savings accounts and focus on dividing other property instead. Maybe one of you gives up a chunk of retirement savings in favor of another asset.
Social Security isn’t like that though. If you are married for 10 years or more and get divorced, you can claim these benefits in your ex-spouse’s name. Your ex may be able to choose between taking their own benefits or yours, depending on how much money you both made before retiring. The good news is that your ex taking Social Security benefits won’t reduce what you get.
What About Savings I Had Before I Got Married?
The good news is that any retirement savings you put away before you got married should not be a part of the property division process. The money you earned and saved while married can be considered a marital asset, but this money you saved up before you got married is separate property. It should be yours after the divorce goes through.
Contact Our Law Firm
So if you have questions about property division or how you can protect your retirement savings and other assets in divorce, we can help. Contact Townsend, Tomaio & Newmark, L.L.C. to schedule a consultation with our legal team.
